Digital Transformation (DX)DEVON SUMMIT

Martin Vodegel & Angela Barendregt

Q: Is an Agile plus DevOps

Transformation the same as a

Digital Transformation?

Digital disrupters are fast and scale easily.

• Big data and analytics

• Cloud computing and other platform

• Mobility solutions

• Connected devices

• Internet of Things

Digital disruptors that use new technology aim

to deliver three types of customer value:

1. Cost value

2. Experience Value

3. Platform Value

4. Combination of these three types of value

WHAT’S HAPPENING IN THE MARKETPLACE?

TRADITIONAL BUSINESS MODELS UNDER

THREAT

New business models of

digital disruptors driven

by Cost value

New business models

of digital disruptors

driven by Experience

value

New business models of

digital disruptors driven

by Platform value

New business models of

digital disruptors driven by

a combination of these

three

• Online booking sites like booking.com,

Expedia exert indirect cost pressure

• Virtualization (dematerialization) by e.g.

Skype, Kindle

• Netflix enables viewers to self

service

• New Balance is offering

running shoes that are tailored

for your foot

• Eco-system: providing a

standardized toolkit

• Communities such as Twitter

who focus the attention on

what is news

• Adyen

• Apple, Google

From: Digital Vortex

When your Business Model is under threat, you have to engage in a DX yourself

Changed Customer expectations

Google, Apple, Facebook have completely altered the expectations of your customer: your service offering needs to

be available 24/7 and needs to work seamlessly cross channels. Convenience is key.

New kids on the block

Former start-ups such as Uber, AirBnB use digital technologies and business models and disrupt your industry.

There’s no safety in being big

Because we’re living in a connected world, disrupting start-ups can build a huge customer base overnight.

There’s no safety in your current customer base

Loyalty doesn’t come from excellent products/ services but from delighting experiences.

WHY ENGAGE IN A DX?

It’s not a question whether your

market will be sucked in the

digital transformation vortex, but

merely when…

The question you need to

answer is: Do you want to be the

last one in your market?

WHO GOES FIRST?

DIGITAL TRANSFORMATION VORTEX

Source: Global Center for Digital Business Transformation, 2015

#1Technology

Products and Services

#2Media and

Entertainment

#3Retail

#4FinancialServices#5

Telecommunications

#6Education

#7Hospitalityand Travel

#8CPG and

Manufacturing

#9Healthcare

#10Utilities

#11Oil and Gas

#12Pharmaceuticals

ENGAGING DISRUPTORS: YOUR BUSINESS

MODEL

Business Model

A business model describes the rationale of how an

organization creates, delivers and captures value.

• A business model typically doesn’t change overnight, it can

be used to depict strategic organizational change.

• Capabilities that are leveraged to change the business

model are typically defined and elaborated on a more

tactical level.

Organizational Capabilities & Value Definition of DX

A digital transformation is an organizational change that is needed to sustain, or improve the economic performance of a company and in which new technologies are applied and new business models are explored.

• New technologies include:Cloud, Mobile, Social Media, Big data and data analytics (AI).

• New business models are centred around:Cost value, Experience value, Platform value, or a Combination of the three.

ENGAGING DISRUPTORS: BUILDING

CAPABILITIES

VALUE

BUSINESS

PROCESS

TECHNOLOGY

DATA & DATA

ANALYTICS

ORGANIZATION

INNOVATION

CUSTOMER

EXPERIENCE

DIGITAL

TRANSFORMATION

ROADMAP

Digital masters…

• …realize they need to develop their business

models.

• …shape a roadmap that will enable them to carve

out new business models.

• …deploy a combination of capabilities on each step

of this roadmap – they do not build capabilities in

isolation.

PATTERNS IN BUILDING DIGITAL

CAPABILITIES

VALUE

BUSINESS

PROCESS

TECHNOLOGY

DATA & DATA

ANALYTICS

ORGANIZATION

INNOVATION

CUSTOMER

EXPERIENCE

DIGITAL

TRANSFORMATION ROADMAP

ROADMAP CAPABILITIES ON A STRATEGIC

COURSE

Business model 2015

Business model 2020

VALUE

BUSINESS PROCESS

TECHNOLOGY

DATA & DATA ANALYTICS

ORGANI-ZATION

INNOVATION

CUSTOMEREXPERIENCE

DIGITAL TRANSFOR-

MATION

ROADMAP

VALUE

BUSINESS PROCESS

TECHNOLOGY

DATA & DATA ANALYTICS

ORGANI-ZATION

INNOVATION

CUSTOMEREXPERIENCE

DIGITAL TRANSFOR-

MATION

ROADMAP

2018

2016

EXAMPLE OF ROADMAPPING DIGITAL

CAPABILITIES

Agile Transformation

Extend Value Proposition

Customer Centricity

Surprising Service

2016 2017 2018 2020

Business –IT Alignment

PO role

Build better BI function

DEvOps

Pensions

Spike on:

– Branding

– Positioning

– Culture

Individual Service:

Customer Experience

Tailor made advice

through website

Tailor made Service

Mid corporate in FSI on a DX

ZOOMING IN ON 2018

• How can we be more customer centric and at the same time lower our cost levels?

Question - What is the main question to be answered?

• Radically change the company's orientation towards customer centricity• Introduce roadmapping unit aimed at service excellence

• Standardize business processes, increase operational excellence

• Restructure the organization• # hierarchical levels drops

• Customer journey experts with Agile teams

Answers a.o….

VALUE

BUSINESS

PROCESS

TECHNOLOGY

DATA & DATA

ANALYTICS

ORGANIZATION

INNOVATION

CUSTOMER

EXPERIENCE

DIGITAL

TRANSFORMATION ROADMAP

BENEFITS OF AN AGILE TRANSFORMATION

• Value steering based on an

integrated Business and IT

Backlog.

• Governance: improved Business IT

alignment.

• Delegating mandate for decision

making to lower hierchical levels.

• Increase the speed and frequency

of delivery (CD).

• Invest in an improved technical

infrastructure.

• Focus on the primary process and actually connect the people to the voice of the customer.

• New organizational structure including new role descriptions (e.g. for scrum master and servant leader).

• Enabling a culture of continuous improvement and continuous learning.

Goal is to improve the agility of your organization, by improving its processes, technology and people.

Process Technology People

Q: Is an Agile plus DevOps Transformation the same as a

Digital Transformation?

A: …

www.digitaltransformations.nl

WANT TO KNOW MORE?

WHY PROWARENESS?

Transformation experience

• Track record with 100+ organization wide transformations.

• We not only make plans. We are able to implement. Iterative transformation approach, based on organizational feedback.

• We have cocreation capabilities on transformation strategy and transformation roadmap.

Digital Transformation knowledge

• We have most capabilities for Digital transformations available: Digital Transformation Strategy, Data and Data Analytics, Organization, Technology, and Innovation.

• We work extensively with partners to ensure top notch knowledge on Customer Journey and Business Process.

Market knowledge and experience

• Extensive knowledge of Financial Services Industry and Telecom.

• We are able to translate strategical plans into the appropriate actions.